Transaero continues to be optimistic at the outlining of their plans for 2000 in Israel

Published: 10/14/1999

Alexander Pleshakov, Chairman of Transaero, has set out a positive vision of the future for the company that, until recently at least, seemed to be teetering on the brink of survival. (www.concise.org. 15th July 1999). Speaking at the presentation of the Transaero-2000 programme at Eilat, in Israel, he confirmed that the company's restructured debts now amount to some $70m, a reduction of $50m from pre-crisis levels. Pleshakov also claims that the airline has generated an operating profit during the last few years, although this was not substantiated with financial data. At the presentation, Transaero outlined an ambitious programme of route development. Flight frequency will be increased on main routes. Its aircraft will fly twice weekly Moscow-St Petersburg and daily from Moscow to London Heathrow. Transaero currently operates four weekly flights to Tel Aviv and next month will add two flights to Eilat. It also plans to resurrect routes cancelled after the crisis to Irkutsk, Nizhnevartovsk, Ekaterinburg and Novosibirsk and to increase the frequency of flights to the Kazak capital, Astana. This suggests that, as with other major operators in Russia, Transaero sees a recovery in volumes in the domestic market. In addition, Transaero is pursuing a number of code-sharing agreements. In summer 2000, it will start code-sharing services with Virgin Atlantic from Russia and the CIS to Los Angeles, Miami and Orlando via London, as well as signing a code-sharing agreement with Lufthansa to serve Paris and Caribbean destinations via Frankfurt. Charter flights to tourist destinations in Spain, Italy, Greece, Portugal, Turkey and Austria will be re-started. The company also intends to make its frequent flyer programme more flexible, to incorporate most tariffs and removing many restrictions (www.concise.org. 13th September 1999). It is developing its own travel agency, Transaero-Tour, with the opening of new offices in St Petersburg, Sochi, Ekaterinburg and the USA. In terms of fleet, Transaero plans to add one or two B737s, and its first Tu204 in 2001. A protocol of intention has been signed with the Aviastar plant at Ulyanovsk, for the purchase of ten Tu-204s (www.concise.org. 25th August 1999), although questions remain as to whether the company has the financial resources to undertake the purchase, although recent reports suggest Aviastar's terms are not very taxing. The company intends to reinforce its Transaero 2000 programme with a questionable publicity stunt comprising a round-the-world flight, using a Boeing 737-700 converted into an all-business-class airliner, taking 12-14 days or 58 flying hours. The flight is scheduled to take off early in January 2000. These are bullish noises from Transaero, with Pleshakov clearly determined to make his mark. The proof of the pudding will be whether such grand plans can actually be translated into a profitable reality in the near term.

Article ID: 974